UNITED STATES | |
SECURITIES AND EXCHANGE COMMISSION | |
Washington, D.C. 20549 | |
FORM 10-Q | |
R QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 |
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from __________ to __________ | |
Commission File Number: 2-17039 | |
NATIONAL WESTERN LIFE INSURANCE COMPANY | |
(Exact name of Registrant as specified in its charter) | |
COLORADO | 84-0467208 |
(State of Incorporation) | (I.R.S. Employer Identification Number) |
850 EAST ANDERSON LANE | |
AUSTIN, TEXAS 78752-1602 | (512) 836-1010 |
(Address of Principal Executive Offices) | (Telephone Number) |
TABLE OF CONTENTS | |
Page | |
June 30, 2013 (Unaudited) and December 31, 2012 | |
For the Three Months Ended June 30, 2013 and 2012 (Unaudited) | |
For the Six Months Ended June 30, 2013 and 2012 (Unaudited) | |
For the Three Months Ended June 30, 2013 and 2012 (Unaudited) | |
For the Six Months Ended June 30, 2013 and 2012 (Unaudited) | |
For the Six Months Ended June 31, 2013 and 2012 (Unaudited) | |
For the Six Months Ended June 30, 2013 and 2012 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | June 30, 2013 | December 31, 2012 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $6,491,176 and $6,503,627) | $ | 6,232,872 | 5,962,120 | |||
Securities available for sale, at fair value (cost: $2,626,174 and $2,658,512) | 2,769,878 | 2,826,001 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 119,372 | 142,170 | ||||
Policy loans | 70,795 | 71,549 | ||||
Derivatives, index options | 121,890 | 57,890 | ||||
Other long-term investments | 31,977 | 41,439 | ||||
Total investments | 9,346,784 | 9,101,169 | ||||
Cash and short-term investments | 68,232 | 124,561 | ||||
Deferred policy acquisition costs | 753,105 | 705,397 | ||||
Deferred sales inducements | 166,984 | 152,844 | ||||
Accrued investment income | 95,279 | 92,665 | ||||
Federal income tax receivable | — | 5,655 | ||||
Other assets | 82,393 | 81,567 | ||||
Total assets | $ | 10,512,777 | 10,263,858 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | June 30, 2013 | December 31, 2012 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 8,670,321 | 8,430,545 | |||
Traditional life reserves | 137,318 | 138,309 | ||||
Other policyholder liabilities | 165,230 | 148,561 | ||||
Deferred Federal income tax liability | 22,491 | 55,054 | ||||
Federal income tax payable | 6,708 | — | ||||
Other liabilities | 110,529 | 99,709 | ||||
Total liabilities | 9,112,597 | 8,872,178 | ||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||
STOCKHOLDERS’ EQUITY: | ||||||
Common stock: | ||||||
Class A - $1 par value; 7,500,000 shares authorized; 3,434,763 issued and outstanding in 2013 and 2012 | 3,435 | 3,435 | ||||
Class B - $1 par value; 200,000 shares authorized, issued, and outstanding in 2013 and 2012 | 200 | 200 | ||||
Additional paid-in capital | 37,767 | 37,767 | ||||
Accumulated other comprehensive income | 41,663 | 76,786 | ||||
Retained earnings | 1,317,115 | 1,273,492 | ||||
Total stockholders’ equity | 1,400,180 | 1,391,680 | ||||
Total liabilities and stockholders' equity | $ | 10,512,777 | 10,263,858 |
2013 | 2012 | |||||
Premiums and other revenues: | ||||||
Universal life and annuity contract charges | $ | 40,363 | 36,653 | |||
Traditional life premiums | 5,218 | 4,904 | ||||
Net investment income | 129,687 | 78,181 | ||||
Other revenues | 5,990 | 5,866 | ||||
Net realized investment gains (losses): | ||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | (72 | ) | (185 | ) | ||
Portion of OTTI (gains) losses recognized in other comprehensive income | (106 | ) | (235 | ) | ||
Net OTTI losses recognized in earnings | (178 | ) | (420 | ) | ||
Other net investment gains (losses) | 1,779 | 2,425 | ||||
Total net realized investment gains (losses) | 1,601 | 2,005 | ||||
Total revenues | 182,859 | 127,609 | ||||
Benefits and expenses: | ||||||
Life and other policy benefits | 18,450 | 13,857 | ||||
Amortization of deferred policy acquisition costs | 28,852 | 31,349 | ||||
Universal life and annuity contract interest | 71,438 | 26,004 | ||||
Other operating expenses | 24,843 | 22,452 | ||||
Total benefits and expenses | 143,583 | 93,662 | ||||
Earnings before Federal income taxes | 39,276 | 33,947 | ||||
Federal income taxes | 12,285 | 10,701 | ||||
Net earnings | $ | 26,991 | 23,246 | |||
Basic earnings per share: | ||||||
Class A | $ | 7.64 | 6.58 | |||
Class B | $ | 3.82 | 3.29 | |||
Diluted earnings per share: | ||||||
Class A | $ | 7.62 | 6.58 | |||
Class B | $ | 3.82 | 3.29 |
2013 | 2012 | |||||
Premiums and other revenues: | ||||||
Universal life and annuity contract charges | $ | 78,262 | 72,852 | |||
Traditional life premiums | 9,082 | 8,987 | ||||
Net investment income | 310,501 | 227,739 | ||||
Other revenues | 12,132 | 11,521 | ||||
Net realized investment gains (losses): | ||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 310 | (462 | ) | |||
Portion of OTTI (gains) losses recognized in other comprehensive income | (549 | ) | (157 | ) | ||
Net OTTI losses recognized in earnings | (239 | ) | (619 | ) | ||
Other net investment gains (losses) | 4,153 | 3,791 | ||||
Total net realized investment gains (losses) | 3,914 | 3,172 | ||||
Total revenues | 413,891 | 324,271 | ||||
Benefits and expenses: | ||||||
Life and other policy benefits | 31,140 | 27,535 | ||||
Amortization of deferred policy acquisition costs | 59,656 | 63,060 | ||||
Universal life and annuity contract interest | 211,738 | 127,547 | ||||
Other operating expenses | 46,767 | 42,470 | ||||
Total benefits and expenses | 349,301 | 260,612 | ||||
Earnings before Federal income taxes | 64,590 | 63,659 | ||||
Federal income taxes | 20,967 | 20,672 | ||||
Net earnings | $ | 43,623 | 42,987 | |||
Basic earnings per share: | ||||||
Class A | $ | 12.34 | 12.16 | |||
Class B | $ | 6.17 | 6.08 | |||
Diluted earnings per share: | ||||||
Class A | $ | 12.32 | 12.16 | |||
Class B | $ | 6.17 | 6.08 |
2013 | 2012 | |||||
Net earnings | $ | 26,991 | 23,246 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | (33,107 | ) | 5,624 | |||
Net unrealized liquidity gains (losses) | 20 | 161 | ||||
Reclassification adjustment for net amounts included in net earnings | (1,037 | ) | (1,658 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | — | ||||
Net unrealized gains (losses) on securities | (34,124 | ) | 4,127 | |||
Foreign currency translation adjustments | 3 | (101 | ) | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | 373 | 225 | ||||
Other comprehensive income | (33,748 | ) | 4,251 | |||
Comprehensive income | $ | (6,757 | ) | 27,497 |
2013 | 2012 | |||||
Net earnings | $ | 43,623 | 42,987 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | (34,232 | ) | 13,376 | |||
Net unrealized liquidity gains (losses) | 158 | 137 | ||||
Reclassification adjustment for net amounts included in net earnings | (2,396 | ) | (2,698 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | 1 | ||||
Net unrealized gains (losses) on securities | (36,470 | ) | 10,816 | |||
Foreign currency translation adjustments | 593 | 285 | ||||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain | 754 | 448 | ||||
Other comprehensive income | (35,123 | ) | 11,549 | |||
Comprehensive income | $ | 8,500 | 54,536 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the Six Months Ended June 30, 2013 and 2012 (Unaudited) (In thousands) | |||||||
2013 | 2012 | ||||||
Common stock: | |||||||
Balance at beginning of period | $ | 3,635 | 3,635 | ||||
Shares exercised under stock option plan | — | — | |||||
Balance at end of period | 3,635 | 3,635 | |||||
Additional paid-in capital: | |||||||
Balance at beginning of period | 37,767 | 37,767 | |||||
Shares exercised under stock option plan | — | — | |||||
Balance at end of period | 37,767 | 37,767 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized gains on non-impaired securities: | |||||||
Balance at beginning of period | 91,972 | 69,116 | |||||
Change in unrealized gains during period, net of tax | (36,628 | ) | 10,679 | ||||
Balance at end of period | 55,344 | 79,795 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (1,426 | ) | (2,320 | ) | |||
Amortization | 77 | 15 | |||||
Other-than-temporary impairments, non-credit, net of tax | 23 | 92 | |||||
Additional credit loss on previously impaired securities | 14 | — | |||||
Change in shadow deferred policy acquisition costs | (77 | ) | 30 | ||||
Balance at end of period | (1,389 | ) | (2,183 | ) | |||
Unrealized losses on impaired available for sale securities: | |||||||
Balance at beginning of period | (196 | ) | (608 | ) | |||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Change in shadow deferred policy acquisition costs | (123 | ) | — | ||||
Recoveries, net of tax | 244 | — | |||||
Balance at end of period | (75 | ) | (608 | ) | |||
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) For the Six Months Ended June 30, 2013 and 2012 (Unaudited) (In thousands) | |||||||
2013 | 2012 | ||||||
Foreign currency translation adjustments: | |||||||
Balance at beginning of period | 2,589 | 2,368 | |||||
Change in translation adjustments during period | 593 | 285 | |||||
Balance at end of period | 3,182 | 2,653 | |||||
Benefit plan liability adjustment: | |||||||
Balance at beginning of period | (16,153 | ) | (15,380 | ) | |||
Amortization of net prior service cost and net gain, net of tax | 754 | 448 | |||||
Balance at end of period | (15,399 | ) | (14,932 | ) | |||
Accumulated other comprehensive income at end of period | 41,663 | 64,725 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,273,492 | 1,182,207 | |||||
Net earnings | 43,623 | 42,987 | |||||
Stockholder dividends | — | — | |||||
Balance at end of period | 1,317,115 | 1,225,194 | |||||
Total stockholders' equity | $ | 1,400,180 | $ | 1,331,321 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2013 and 2012 (Unaudited) (In thousands) | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 43,623 | 42,987 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 211,738 | 127,547 | |||||
Surrender charges and other policy revenues | (7,105 | ) | (7,009 | ) | |||
Realized (gains) losses on investments | (3,914 | ) | (7,743 | ) | |||
Accrual and amortization of investment income | (1,487 | ) | (1,400 | ) | |||
Depreciation and amortization | 2,813 | 2,841 | |||||
(Increase) decrease in value of index options | (91,124 | ) | (9,959 | ) | |||
(Increase) decrease in deferred policy acquisition and sales inducement costs | (4,984 | ) | 3,664 | ||||
(Increase) decrease in accrued investment income | (2,224 | ) | (2,301 | ) | |||
(Increase) decrease in other assets | (2,594 | ) | (3,960 | ) | |||
Increase (decrease) in liabilities for future policy benefits | 5,349 | 3,602 | |||||
Increase (decrease) in other policyholder liabilities | 16,669 | 2,797 | |||||
Increase (decrease) in Federal income taxes | (563 | ) | (12,757 | ) | |||
Increase (decrease) in other liabilities | 87 | 3,385 | |||||
Other, net | — | 128 | |||||
Net cash provided by operating activities | 166,284 | 141,822 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities available for sale | 9,670 | (367 | ) | ||||
Other investments | 11,925 | 3,492 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 710,366 | 696,502 | |||||
Securities available for sale | 128,127 | 177,601 | |||||
Index options | 54,640 | 941 | |||||
Purchases of: | |||||||
Securities held to maturity | (970,658 | ) | (785,820 | ) | |||
Securities available for sale | (191,387 | ) | (271,552 | ) | |||
Index options | (28,498 | ) | (26,153 | ) | |||
Other investments | (15 | ) | (4,263 | ) | |||
Principal payments on mortgage loans | 25,490 | 38,154 | |||||
Cost of mortgage loans acquired | (2,419 | ) | (8,403 | ) | |||
Decrease (increase) in policy loans | 754 | 598 | |||||
Other, net | (3 | ) | — | ||||
Net cash used in investing activities | (252,008 | ) | (179,270 | ) | |||
Continued on Next Page |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED For the Six Months Ended June 30, 2013 and 2012 (Unaudited) (In thousands) | |||||||
2013 | 2012 | ||||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 477,776 | 454,963 | |||||
Return of account balances on universal life and annuity contracts | (448,973 | ) | (425,827 | ) | |||
Issuance of common stock under stock option plan | — | — | |||||
Net cash provided by financing activities | 28,803 | 29,136 | |||||
Effect of foreign exchange | 592 | 286 | |||||
Net increase (decrease) in cash and short-term investments | (56,329 | ) | (8,026 | ) | |||
Cash and short-term investments at beginning of period | 124,561 | 119,290 | |||||
Cash and short-term investments at end of period | $ | 68,232 | $ | 111,264 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 30 | $ | 20 | |||
Income taxes | $ | 22,695 | $ | 33,495 | |||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | 1,429 | $ | 158 |
(1) | CONSOLIDATION AND BASIS OF PRESENTATION |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended June 30, | ||||||||||||
2013 | 2012 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 26,991 | 23,246 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 26,991 | 23,246 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 26,227 | 764 | 22,589 | 658 | ||||||||
Net income | $ | 26,227 | 764 | 22,589 | 658 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 7 | — | — | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,442 | 200 | 3,435 | 200 | ||||||||
Basic Earnings Per Share | $ | 7.64 | 3.82 | 6.58 | 3.29 | |||||||
Diluted Earnings Per Share | $ | 7.62 | 3.82 | 6.58 | 3.29 |
Six Months Ended June 30, | ||||||||||||
2013 | 2012 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 43,623 | 42,987 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 43,623 | 42,987 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 42,389 | 1,234 | 41,771 | 1,216 | ||||||||
Net income | $ | 42,389 | 1,234 | 41,771 | 1,216 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 6 | — | — | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,441 | 200 | 3,435 | 200 | ||||||||
Basic Earnings Per Share | $ | 12.34 | 6.17 | 12.16 | 6.08 | |||||||
Diluted Earnings Per Share | $ | 12.32 | 6.17 | 12.16 | 6.08 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 47 | 43 | 95 | 87 | |||||||
Interest cost | 218 | 232 | 436 | 464 | ||||||||
Expected return on plan assets | (283 | ) | (267 | ) | (567 | ) | (535 | ) | ||||
Amortization of prior service cost | 1 | 1 | 2 | 2 | ||||||||
Amortization of net loss | 203 | 197 | 406 | 393 | ||||||||
Net periodic benefit cost | $ | 186 | 206 | 372 | 411 |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 45 | 42 | 89 | 84 | |||||||
Interest cost | 200 | 228 | 400 | 456 | ||||||||
Amortization of prior service cost | 14 | 15 | 29 | 30 | ||||||||
Amortization of net loss | 293 | 286 | 587 | 571 | ||||||||
Net periodic benefit cost | $ | 552 | 571 | 1,105 | 1,141 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 30 | 33 | 59 | 65 | |||||||
Amortization of prior service cost | 25 | 26 | 51 | 52 | ||||||||
Amortization of net loss | 8 | 9 | 16 | 20 | ||||||||
Net periodic benefit cost | $ | 63 | 68 | 126 | 137 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2013 | |||||||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 45,391 | 231,684 | 643,014 | — | 920,089 | |||||||||
Total segment assets | 522,003 | 1,134,181 | 8,420,780 | 253,831 | 10,330,795 | ||||||||||
Future policy benefits | 454,359 | 875,672 | 7,477,608 | — | 8,807,639 | ||||||||||
Other policyholder liabilities | 13,109 | 14,734 | 137,387 | — | 165,230 | ||||||||||
Three Months Ended | |||||||||||||||
June 30, 2013 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 9,413 | 30,177 | 5,991 | — | 45,581 | |||||||||
Net investment income | 8,242 | 13,637 | 102,805 | 5,003 | 129,687 | ||||||||||
Other revenues | (3 | ) | 108 | (9 | ) | 5,894 | 5,990 | ||||||||
Total revenues | 17,652 | 43,922 | 108,787 | 10,897 | 181,258 | ||||||||||
Life and other policy benefits | 1,096 | 3,225 | 14,129 | — | 18,450 | ||||||||||
Amortization of deferred acquisition costs | 2,210 | 7,926 | 18,716 | — | 28,852 | ||||||||||
Universal life and annuity contract interest | 7,868 | 9,244 | 54,326 | — | 71,438 | ||||||||||
Other operating expenses | 4,947 | 6,125 | 8,466 | 5,305 | 24,843 | ||||||||||
Federal income taxes (benefit) | 468 | 5,456 | 4,087 | 1,715 | 11,726 | ||||||||||
Total expenses | 16,589 | 31,976 | 99,724 | 7,020 | 155,309 | ||||||||||
Segment earnings (loss) | $ | 1,063 | 11,946 | 9,063 | 3,877 | 25,949 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six months ended | |||||||||||||||
June 30, 2013 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 19,023 | 58,196 | 10,125 | — | 87,344 | |||||||||
Net investment income | 16,015 | 32,267 | 253,183 | 9,036 | 310,501 | ||||||||||
Other revenues | 9 | 151 | 30 | 11,942 | 12,132 | ||||||||||
Total revenues | 35,047 | 90,614 | 263,338 | 20,978 | 409,977 | ||||||||||
Life and other policy benefits | 4,126 | 6,870 | 20,144 | — | 31,140 | ||||||||||
Amortization of deferred acquisition costs | 4,245 | 13,713 | 41,698 | — | 59,656 | ||||||||||
Universal life and annuity contract interest | 15,059 | 31,235 | 165,444 | — | 211,738 | ||||||||||
Other operating expenses | 8,714 | 12,833 | 14,552 | 10,668 | 46,767 | ||||||||||
Federal income taxes (benefit) | 938 | 8,386 | 6,944 | 3,330 | 19,598 | ||||||||||
Total expenses | 33,082 | 73,037 | 248,782 | 13,998 | 368,899 | ||||||||||
Segment earnings (loss) | $ | 1,965 | 17,577 | 14,556 | 6,980 | 41,078 |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2012 | |||||||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 35,681 | 229,034 | 595,865 | — | 860,580 | |||||||||
Total segment assets | 430,613 | 1,062,917 | 8,149,053 | 228,674 | 9,871,257 | ||||||||||
Future policy benefits | 367,968 | 795,992 | 7,152,771 | — | 8,316,731 | ||||||||||
Other policyholder liabilities | 11,899 | 13,710 | 128,496 | — | 154,105 | ||||||||||
Three Months Ended | |||||||||||||||
June 30, 2012 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 4,280 | 32,115 | 5,162 | — | 41,557 | |||||||||
Net investment income | 3,991 | 7,315 | 61,875 | 5,000 | 78,181 | ||||||||||
Other revenues | 45 | 314 | (260 | ) | 5,767 | 5,866 | |||||||||
Total revenues | 8,316 | 39,744 | 66,777 | 10,767 | 125,604 | ||||||||||
Life and other policy benefits | 1,620 | 6,315 | 5,922 | — | 13,857 | ||||||||||
Amortization of deferred acquisition costs | 2,068 | 7,757 | 21,524 | — | 31,349 | ||||||||||
Universal life and annuity contract interest | 1,230 | 6,431 | 18,343 | — | 26,004 | ||||||||||
Other operating expenses | 2,578 | 6,718 | 7,744 | 5,412 | 22,452 | ||||||||||
Federal income taxes (benefit) | 261 | 3,943 | 4,110 | 1,685 | 9,999 | ||||||||||
Total expenses | 7,757 | 31,164 | 57,643 | 7,097 | 103,661 | ||||||||||
Segment earnings (loss) | $ | 559 | 8,580 | 9,134 | 3,670 | 21,943 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six months ended | |||||||||||||||
June 30, 2012 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 14,819 | 55,546 | 11,474 | — | 81,839 | |||||||||
Net investment income | 9,809 | 22,712 | 186,264 | 8,954 | 227,739 | ||||||||||
Other revenues | 52 | 346 | (199 | ) | 11,322 | 11,521 | |||||||||
Total revenues | 24,680 | 78,604 | 197,539 | 20,276 | 321,099 | ||||||||||
Life and other policy benefits | 3,268 | 9,795 | 14,472 | — | 27,535 | ||||||||||
Amortization of deferred acquisition costs | 4,459 | 13,365 | 45,236 | — | 63,060 | ||||||||||
Universal life and annuity contract interest | 8,443 | 21,243 | 97,861 | — | 127,547 | ||||||||||
Other operating expenses | 7,346 | 12,536 | 11,772 | 10,816 | 42,470 | ||||||||||
Federal income taxes (benefit) | 376 | 7,006 | 9,120 | 3,060 | 19,562 | ||||||||||
Total expenses | 23,892 | 63,945 | 178,461 | 13,876 | 280,174 | ||||||||||
Segment earnings (loss) | $ | 788 | 14,659 | 19,078 | 6,400 | 40,925 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 45,581 | 41,557 | 87,344 | 81,839 | |||||||
Net investment income | 129,687 | 78,181 | 310,501 | 227,739 | ||||||||
Other revenues | 5,990 | 5,866 | 12,132 | 11,521 | ||||||||
Realized gains (losses) on investments | 1,601 | 2,005 | 3,914 | 3,172 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 182,859 | 127,609 | 413,891 | 324,271 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: | ||||||||||||
Total segment Federal income taxes | $ | 11,726 | 9,999 | 19,598 | 19,562 | |||||||
Taxes on realized gains (losses) on investments | 559 | 702 | 1,369 | 1,110 | ||||||||
Total condensed consolidated Federal income taxes | $ | 12,285 | 10,701 | 20,967 | 20,672 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Net Earnings: | ||||||||||||
Total segment earnings | $ | 25,949 | 21,943 | 41,078 | 40,925 | |||||||
Realized gains (losses) on investments, net of taxes | 1,042 | 1,303 | 2,545 | 2,062 | ||||||||
Total condensed consolidated net earnings | $ | 26,991 | 23,246 | 43,623 | 42,987 |
June 30, | ||||||
2013 | 2012 | |||||
(In thousands) | ||||||
Assets: | ||||||
Total segment assets | $ | 10,330,795 | 9,871,257 | |||
Other unallocated assets | 181,982 | 84,204 |